Hyperliquid Price Forecast: HYPE hits a make-or-break zone amid easing demand

• Hyperliquid edges lower to $60 on Wednesday, testing a crucial support trendline.
• HYPE derivatives suggest mixed retail sentiment as price nears a make-or-break zone.
• Institutional demand wanes with the ETF recording $698,040 in outflows on Tuesday.

Hyperliquid (HYPE) hovers around $60 on Wednesday, capped below its 50-day Exponential Moving Average (EMA) at $62.70. The everything exchange token is losing its retail demand as funding rates fluctuate near zero amid elevated long liquidations. Institutional investors remain on the sidelines, with Exchange-Traded Funds (ETFs) recording $698,040 in outflows on Tuesday, in line with easing buying pressure.

Institutional and retail sentiment in limbo

Hyperliquid-focused ETFs see reduced demand from large-wallet investors. SoSoValue data shows $698,040 in outflows on Tuesday, extending last week’s outflow of $7.26 million, after nine consecutive weeks of inflows. This marks a shift in institutional demand, leading to waning buying pressure.

In addition, Lookonchain reported that Multicoin Capital is likely trimming its 606,091 HYPE holding, which it bought around $30 about five months ago. Data shows that a wallet likely linked to Multicoin Capital deposited 395,570 HYPE to Coinbase Prime and requested to unstake a position of 211,486 HYPE. 

On the retail front, HYPE futures Open Interest (OI) is down 2% over the last 24 hours to $2.52 billion, a mild contraction in notional value of outstanding contracts, in line with the falling spot price. At the same time, long liquidations of $1.25 million outpace short liquidations of $377,850, projecting a bearish bias in the near term.

However, the 22% increase in trading volume to $2.03 billion reflects increased trading interest, despite the funding rate of 0.0009%, up from -0.0013% the previous day, indicating indecisiveness among traders.

Will the Hyperliquid price bounce back from $60?

Hyperliquid maintains a mildly bearish near-term tone, holding below the 50-day EMA at $62.70 while remaining above the 200-day EMA at $49.95. HYPE hovers just over an upward-sloping trendline at $60.41, suggesting that price is near a make-or-break zone.

A potential slip below this trendline could extend the decline toward the 50% retracement level at $54.19, measured from $38.17 to $76.93.

Momentum readings are subdued, with the Relative Strength Index (RSI) around 42, sloping below the midline as buying pressure wanes. Meanwhile, the Moving Average Convergence Divergence (MACD) is in negative territory, suggesting recovery attempts could remain capped.

On the topside, initial resistance is seen at the 50-day EMA at $62.70, closely backed by the 78.6% retracement at $66.22 and a resistance trendline near $69.87. A sustained break above this zone would be needed to soften the bearish bias and open the way toward the record high of $76.93.

(The technical analysis of this story was written with the help of an AI tool. Know more.)